WaMu will face trial in November over $4bn of low-ranking securities

Washington Mutual Inc., the ex-owner of the biggest US bank to fail, will face a November trial in an investor lawsuit over ownership of $4bn in low-ranking debt known as trust-preferred securities, a judge said.US Bankruptcy Judge Mary Walrath in Wilmington, Delaware, scheduled a trial for Nov. 1, the first day of a confirmation hearing on WaMu’s reorganization plan.

Commentary

With the recent turnover in leadership at the Federal Housing Finance Agency, we may be standing at the precipice of great change in the government’s role in supporting the mortgage market through Fannie Mae and Freddie Mac.